Harmonization of Halal Standards To Drive Global Trade and Boost Consumer Trust

The international harmonization of halal standards is poised to revolutionize global trade and consumer confidence in the burgeoning halal economy, according to experts gathered at a pivotal forum in the Caspian capital.

The 2nd Azerbaijan Halal Business (AZHAB) Forum, held on October 7-8, 2025, at the Baku Marriott Hotel Boulevard in Baku, Azerbaijan, served as a key platform for advancing cooperation in the global halal economy. Organized under the auspices of the Organization of Islamic Cooperation (OIC), the two-day event brought together government officials, industry leaders, and experts from OIC member states to discuss investment opportunities, trade partnerships, and sustainable development in the halal sector. A parallel exhibition featured halal-certified products and services from Azerbaijani and international companies, including foodstuffs, cosmetics, and financial solutions, underscoring Azerbaijan’s emerging role as a regional halal hub.

During a keynote address, Ihsan Ovut, Secretary General of the Standards and Metrology Institute for Islamic Countries (SMIIC), highlighted the critical role of harmonized halal standards in fostering international trade and building consumer trust. Established in 2010 and headquartered in Istanbul, Turkey, SMIIC functions as the OIC’s specialized agency for developing and promoting unified standards in metrology, calibration, and quality management across its 40 member countries. With a portfolio exceeding 30 published standards, the institute addresses longstanding challenges in the halal industry, such as varying certification requirements that hinder cross-border commerce.

Ovut emphasized that international harmonization streamlines certification processes, eliminating the need for redundant audits in multiple jurisdictions. “With harmonized standards, there’s no need to repeat the certification process in every country,” he stated. “This saves both time and cost. More importantly, harmonization boosts consumer confidence. People can trust that a product certified as halal in one country is also valid in another. This trust and efficiency give companies easier access to regional and even global markets, turning standardization into real business success.” This approach is particularly vital in a halal market projected to exceed USD 2.8 trillion by 2028, spanning sectors like food, pharmaceuticals, tourism, and finance, where consistent standards can reduce operational costs by up to 50% for exporters and enhance market penetration.

Further elaborating on SMIIC’s contributions, Ovut noted the establishment of Technical Committee 11 on Halal Management Systems, which integrates Islamic principles—such as those derived from maqasid al-shariah (objectives of Islamic law)—with international frameworks like ISO standards. The committee’s flagship achievement is the OIC/SMIIC 18:2021 standard, “Halal Quality Management System – Requirements,” a 50-page guideline published in March 2021. This document provides organizations with detailed protocols for halal compliance, including risk assessments for contamination, employee training on hygiene practices, and supply chain audits to ensure ethical sourcing. Adoption of this standard has enabled firms to achieve not only regulatory alignment but also improvements in environmental, social, and governance (ESG) performance, attracting investment from ethical funds.

Ovut also outlined ongoing initiatives, including the development of “General Requirements for Applying Islamic Ethics and Values in Management Systems.” This forthcoming standard aims to embed core Islamic values—fairness, transparency, and sustainability—into corporate governance. For small and medium-sized enterprises (SMEs), which constitute a significant portion of OIC economies, it offers practical tools such as ethical key performance indicators (KPIs) and decision-making templates, facilitating systematic integration into operations. “This will help organizations systematically integrate ethical, value-based principles into their daily operations,” Ovut concluded, positioning the halal sector as a benchmark for responsible global business practices.

The forum concluded with the signing of memoranda on cross-border halal tourism and green initiatives, signaling strengthened commitments among participants. Through efforts like those led by SMIIC, harmonized standards are poised to drive equitable growth, reducing trade barriers and promoting a faith-informed approach to international commerce.